IB supported stock exchanges - NO Korean stocks?

Discussion in 'Interactive Brokers' started by markd01, Jul 20, 2019.

  1. markd01

    markd01

    Does anyone know why there is no stock trading on Korea Stock Exchange (KSE) through IB? As per World Federation of Exchanges, KSE is one of the bigger exchanges, with some 216 Billion USD/month traded or 2.6% of all equity trading in the world. Is it a regulatory issue (I'm US based)?

    IB supported exchanges: https://www.interactivebrokers.com/en/index.php?f=1562&p=asia

    Boom, HK based broker, supported exchanges (has South Korea, Taiwan, Thailand, Malaysia, Indonesia, the Philippines): https://boom.com/en/why_boom/multi_market/

    Also, does IB ever announce what exchanges they are working to support next? I only see news stories about new exchanges as they come online at IB, such as Israel and Russia (for Russian residents only) earlier this year.
     
  2. many Asian exchanges, Korea, Taiwan, Malaysia, etc, require soft approvals/soft capital controls to limit hot portfolio flows after the Asian crisis. A direct broker can only connect you to free-capital-flow market. Boom routes the orders to local brokers and requires some documentation before you can trade those markets. Commission is much higher thus. Boom and IB are completely different models, comparison is silly
     
    GRULSTMRNN and dealmaker like this.
  3. henry76

    henry76

    He was using his brain and asked a question to which you've provided the answer, at some effort it seems, though I'm afraid rather coloured by your natural charm and bonhomie.
     
    HobbyTrading, dealmaker, d08 and 2 others like this.
  4. markd01

    markd01

    Thanks Henry. I did not want the topic to be sidetracked by a troll (a natural charmer, haha) so just reported his post and ignored the user.
    Back to the topic, what's stopping IB from supporting Korean, etc equities?
    a) IB has user approval per exchange where one could supply additional documentation to satisfy more stringent requirements
    b) IB, just like Boom, is not necessarily a direct broker, as per https://www.financemagnates.com/for...okers-gets-trading-access-to-moscow-exchange/ :
    "The development has been made possible after the broker gained trading access to the Moscow Exchange (MOEX) via the Russian subsidiary of Austrian bank Raiffeisen. Raiffeisenbank holds a Russian broker license."
     
  5. markd01

    markd01

    a1) IB participates in Shanghai + Shenzhen Stock connect which has "cross-boundary investment quota" implemented, couldn't something like that be done on smaller Asian exchanges to prevent excessive foreign capital flows? https://ibkr.info/article/2267
     
    Last edited: Jul 20, 2019
  6. Have you asked your questions to IB directly? If so, how did they respond (I'm curious about their answer)?
    I am trading Korean futures, but did not notice that stocks are not available. What I did notice is that there are limitations on exchanging KRW (Korean Won) to other currencies (e.g. USD).
     
  7. d08

    d08

    I'm also looking into Korean stocks but as mentioned, the capital controls seem to be an issue. Quite strange in the 21st century in a free market country. IB should attempt to figure it out though.
     
  8. markd01

    markd01

    HobbyTrading, I do have an outstanding ticket with IB about plans to support equity trading in South Korea, Taiwan, Thailand, Malaysia, Indonesia.. no answer yet. Sometimes it's faster to get an answer from another user.
     
  9. Great. I would be interested to hear IB's reply. Not only related to Korea, but also to the other countries you mention.
     
    d08 likes this.
  10. zdreg

    zdreg

    Trade barriers are going up nearly everywhere. Europeans from the EU cannot buy Americans ETFS.
     
    #10     Jul 20, 2019